3.1.1

Principle 3: Fair and equitable sharing of benefits derived from the use of biodiversity

Criteria	Guidance	Evidence & Scoring	Importance & Applicability
Criteria 3.1: Criteria 3.1: Prices paid for natural raw materials are fair 3.1.1 Prices paid to producers of natural raw materials are based on cost-calculation and cover, at a minimum, the costs of production - including labour, materials, overheads, and a margin – undertaken in line with the practices defined in this standard, such as those related to conservation and sustainable use, human and worker rights and conditions.	Price calculation methods should consider the costs associated to the production itself (when applicable: seedling, agricultural inputs, specific authorisations, fields rental, employed workforce, machinery costs - rental, new acquisition, maintenance -, consultant's cost, cost of transportation for goods or workforce, etc.) but also costs for implementing good agricultural practices, e.g. organic production practices, measures for protecting/restoring biodiversity; costs of training and awareness raising events; costs of technical support and internal audits. In the case that sub-suppliers are negotiating and directly involved in pricing with producers, this requirement will also apply at their level. The following are available tools from UEBT (contact us at certification@uebt.org to obtain these) to help with this criterion: fair prices guidance document including a cost calculation annex cost calculation tool The scope of this indicator is the price paid by the OaS to the producers (not the prices paid along the supply chain). This indicator is applicable to the relationship between OaS and producers, when they're both involved in the scope of the assessment. If the OaS is the producer in the supply chain, this indicator is not applicable.	DOCUMENTATION breakdown of prices paid to producers cost calculation method cost of production for the producers investment documentation for good practices implementation INTERVIEWS with OaS about the cost calculation definition and process with producers/field operators: to verify their effective cost of production, if they've been consulted on the real cost, if they invested on Good Practices implementation, if their activity is profitable (margin always available after all costs have been paid, etc.) Scoring guidance 0 - There is no cost calculation available, nor awareness of cost of production at the field level (producers or field operators) 1 - Cost of production is known, but no formalisation of cost calculation is available to support the information 2 - Prices are based on cost calculation and there is evidence that the costs of production are covered with a margin available, but no related costs or investments for implementing good agricultural practices have been taken into consideration 3 - Prices are based on cost calculation including all the elements detailed in the requirements (cost for implementing good practices in line with our standard -see UEBT guidance on this topic), are documented and a margin is available (prices are not equal to overall costs)	Importance Critical Applicability Cultivation & wild collection OaS Sub-suppliers Field operators

Criteria

Guidance

Evidence & Scoring

Importance & Applicability

Criteria 3.1: Criteria 3.1: Prices paid for natural raw materials are fair

3.1.1

Prices paid to producers of natural raw materials are based on cost-calculation and cover, at a minimum, the costs of production - including labour, materials, overheads, and a margin – undertaken in line with the practices defined in this standard, such as those related to conservation and sustainable use, human and worker rights and conditions.

Price calculation methods should consider the costs associated to the production itself (when applicable: seedling, agricultural inputs, specific authorisations, fields rental, employed workforce, machinery costs - rental, new acquisition, maintenance -, consultant's cost, cost of transportation for goods or workforce, etc.) but also costs for implementing good agricultural practices, e.g. organic production practices, measures for protecting/restoring biodiversity; costs of training and awareness raising events; costs of technical support and internal audits. In the case that sub-suppliers are negotiating and directly involved in pricing with producers, this requirement will also apply at their level. The following are available tools from UEBT (contact us at certification@uebt.org to obtain these) to help with this criterion:

fair prices guidance document including a cost calculation annex

cost calculation tool The scope of this indicator is the price paid by the OaS to the producers (not the prices paid along the supply chain).
This indicator is applicable to the relationship between OaS and producers, when they're both involved in the scope of the assessment. If the OaS is the producer in the supply chain, this indicator is not applicable.

DOCUMENTATION

breakdown of prices paid to producers

cost calculation method

cost of production for the producers

investment documentation for good practices implementation

INTERVIEWS

with OaS about the cost calculation definition and process

with producers/field operators: to verify their effective cost of production, if they've been consulted on the real cost, if they invested on Good Practices implementation, if their activity is profitable (margin always available after all costs have been paid, etc.)

Scoring guidance

0 - There is no cost calculation available, nor awareness of cost of production at the field level (producers or field operators)
1 - Cost of production is known, but no formalisation of cost calculation is available to support the information
2 - Prices are based on cost calculation and there is evidence that the costs of production are covered with a margin available, but no related costs or investments for implementing good agricultural practices have been taken into consideration
3 - Prices are based on cost calculation including all the elements detailed in the requirements (cost for implementing good practices in line with our standard -see UEBT guidance on this topic), are documented and a margin is available (prices are not equal to overall costs)

Importance
Critical

Applicability

Cultivation & wild collection

OaS

Sub-suppliers

Field operators

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3.1.1

Principle 3: Fair and equitable sharing of benefits derived from the use of biodiversity

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